San José State University. College of Business Accounting and Finance Department. Taxation of Partnerships. BUS 223B Late Spring 2017

Transcription

1 San Joé State Univerity College of Buine Accounting and Finance Department Taxation of Partnerhip BUS 223B Late Spring 2017 Intructor: Office Location: Telephone: Office Hour: Joel Buch Luca Graduate School of Buine (408) minute before and after cla and by appointment Cla Day/Time: Wedneday - 6:00 p.m. to 10:00 p.m. (4/19 to 6/7) Saturday, May 6 (1:00 p.m. to 5:00 p.m.) + 1 online cla eion Claroom: Luca School Silicon Valley Site 2933 Bunker Hill Lane - Suite 120 Santa Clara, CA *** However, for Wedneday, May 17, the cla will be on the main campu claroom BBC 003 (College of Buine Claroom) Prerequiite: Bu 223A, graduate tanding Faculty Web Page Coure material uch a yllabu, handout, PowerPoint lide, note, aignment intruction, etc. may be found on the Canva learning management ytem coure webite. You are reponible for regularly checking Canva to learn of any coure update including new meage, reading and aignment. Page 1 of 8

2 Coure Decription Income tax treatment of partner and partnerhip and LLC, including the creation, operation, liquidation and ale or other amalgamation of organization. Special allocation and non-recoure debt arrangement are alo covered. Coure Learning Outcome Upon completion of thi coure you hould be able to: CLO 1: Undertand the theorie underlying the Federal income tax proviion dealing with the formation, operation, liquidation and ale of partnerhip, and tranaction between partner and partnerhip. Comparion to other form of buine entitie; multi-member limited liability companie taxed a partnerhip and the California taxation of partnerhip and multi-member LLC will alo be dicued. CLO 2: Identify key area where tate tax rule may have different treatment for partnerhip / LLC than the federal tax rule and the relevance to tax planning. CLO 3: Develop conceptual and analytic kill with real world application. CLO 4: To identify, undertand and reolve complex and multijuridictional tax iue within the context of our global economy and ociety. CLO 5: To learn and acquire reearch kill for exploring both familiar and novel area of the tax law and to communicate the finding uing clear term. CLO 6: To appreciate tax policy iue and foundation of the tax law. CLO 7: To undertand the ethical implication of tax practice. CLO 8: To develop kill for effective tax practice including keeping current, interacting with other, and career advancement. Required Text/Reading Textbook 1) (Primary) The Logic of Subchapter K A Conceptual Guide to the Taxation of Partnerhip Fifth Edition Wet Academic (Referred to below a Cunningham). 2) (Supplemental) Cutomized etextbook by South-Wetern / Cengage (Referred to below a Cengage). Intruction for purchaing thi etextbook will be poted on Canva. Other Reading [All material available online or via your online SJSU library account] Page 2 of 8

3 o Internal Revenue Code ection and Income Tax Regulation. It i expected that tudent read the IRC ection and Regulation that are referenced in the text, in addition to thoe emphaized in the coure yllabu and, if applicable, poted on Canva. o California FTB 2016 Partnerhip Tax Booklet: o California FTB Limited Liability Company (LLC) Filing Information Publication (FTB 3556): o California FTB Overview of Withholding on Ditribution to Non-California Partner, LLC Member and S Corporation Shareholder: o California FTB Publication 1017: o BNA Portfolio 1550 Choice of Entity An Overview of Tax and Non Tax Conideration (elected ection) o IRS v. Culberton, 337 US 733 (1949) [U.S. Supreme Court Cae] o Ue of RIA, CCH and/or BNA for reearch and background reading to upplement above reading o Additional material may be delivered in cla or poted on the Bu 223B Canva webite MST Program Adminitrative Guideline Pleae ee the Fall 2016 / Spring 2017 MST New Student Handbook at: Aignment and Grading Policy Reading and Viewing Aignment: Reading aignment have been cheduled throughout the cla term. It i expected that the tudent have completed the aigned reading prior to cla. In-Cla Aignment: Throughout the coure time will be allocated for in-cla aignment that will be worked on either in group or individually. In addition to ungraded in-cla problem there will be a total of two graded in-cla aignment during the emeter. The aignment will be written or informal preentation. The format and detail of each in-cla aignment will be provided in cla. You mut be preent and/or complete the in-cla aignment in order to receive applicable point. There may be a ignificant lo of point for any graded in-cla aignment turned in late. Quizze: There will be 5 quizze during the emeter. Thi quizze will be taken online on Canva. You will have two attempt at each quiz. The highet core of the two attempt will be ued a your core for that particular quiz. Any quizze turned in late are ubject to a ignificant reduction in point. The online quizze mut be undertaken on an individual bai they are not group quizze. It i againt MST and Univerity policy to hare anwer among tudent (current, former or future). Page 3 of 8

4 Exam: A final examination will be adminitered during the final week of cla. One page of note (not larger that 8.5" x 11", double-ided) will be allowed. Detail regarding the general format of the exam will be dicued in cla. Under almot all circumtance there are no make-up exam. On very rare occaion and at my dicretion, tudent may be allowed to make up the final exam. Student mut give advance notification with documentation in order for me to make a deciion regarding a make-up exam. If an exam i mied without prior conent, the exam grade i zero under almot all circumtance. The final exam mut be taken on the cheduled date and time detailed on the aignment chedule. All ubmitted exam anwer will require the ue of a Scantron form (Verion 882-E) unle tated otherwie. Grade: Coure grade will be determined on the bai of total point earned in the cla. Pleae ee below for additional information on grading: Canva Online Quizze (5) 50 point (10 point each) In-Cla Aignment (2) 20 point (10 point each) Final Exam 130 point Total Poible Point 200 point Grade will follow the pattern of 90% or higher for an A, 80% or higher for a B, 70% or higher for a C, etc. Plu (+) and minu (-) grade will be ued for core within two percentage point of the grade breakpoint (for example, 92% for an A- grade). Cla Participation: While you are encouraged to ak or anwer quetion in cla, point will not be awarded for cla participation. Univerity Policie Per Univerity Policy S16-9, univerity-wide policy information relevant to all coure, uch a academic integrity, accommodation, etc. will be available on Office of Graduate and Undergraduate Program Syllabu Information web page at: Luca College and Graduate School of Buine: Miion: We are the intitution of opportunity in Silicon Valley, educating future leader through experiential learning and character development in a global buine community and by conducting reearch that contribute to buine theory, practice and education. Page 4 of 8

5 Taxation of Partnerhip Bu. 223B Late Spring 2017 Wedneday 6:00 p.m. to 10:00 p.m. (Saturday Seion on May 6) (SCHEDULE IS SUBJECT TO CHANGE WITH FAIR NOTICE) (Any change will be announced in cla and/or on Canva) Coure Schedule C l a Date Cla Topic Reading Due Before Cla 1 4/19 Introduction to the coure and topic Partnerhip Overview and Definition (See link above under Reading ) Cunningham: Chapter 1; Chapter 2: Page 11 to top of Page 13 (Up to Common Iue on Formation) and 18-23; Chapter 3: Page Homework and Other Activitie to Complete Before Cla Partnerhip Formation and Bai Fundamental Introduction into Federal reporting compliance rule Overview of LLC Cengage: Chapter 10: Section 10-1a; 10-1b; 10-2a; 10-3c [through Example 30]; 10-5a; 10-5b; 10-5d; Chapter 11: 11-7b (LLC); 11-7c (LLP) IRC 701; 705(a); 721; 722; 723; 752(a) and (b); 761(a) through (c); 7701(a)(1) and (a)(2) Trea. Reg (a)(1) and (a)(2); (a) and -3(b)(1)(i) BNA Portfolio 1550 (in the State Portfolio Section) Section C (the General Partnerhip incl. The Limited Liability Partnerhip); D (The Limited Partnerhip); H (LLC); C.3; C.4; and C.7 IRS v. Culberton, 337 US 733 (1949) Page 5 of 8

6 C l a Date Cla Topic Reading Due Before Cla (See link above under Reading ) Homework and Other Activitie to Complete Before Cla 2 4/26 Start-up, Organizational and Syndication Cot Partnerhip Interet in Exchange for Service - Introduction Calculation of Partnerhip Income Payment to Partner Incl. 707(a) and 707(c) Guaranteed Payment Period and Method Cunningham: Chapter 2 Page (Organization and Syndication Expene); Chapter 3: Page 25-36; Chapter 9: Page Cengage: Section 10-2b (Service portion only); 10-2e; 10-2f; 10-2g; 10-4a; 10-4b IRC 195 [kip 195(b)(3)]; 267(a)(1), (a)(2); 448(a)(2), (b)(1), (b)(2), (b)(3), and (c); 702; 703;706; 707; 709; Trea. Reg (b)(2)(iv); Online Canva Quiz #1 3 5/3 Maintenance of capital account Special allocation on contribution of property including ubequent partnerhip ale of contributed property Cunningham: Chapter 2: Page 14-18; Chapter 4; Chapter 7; Chapter 10: Page Cengage: Section 10-3a; 10-3b Online Canva Quiz #2 Character and Preentation of Partnerhip Income IRC 704; 724 Trea. Reg (c) Allocation of Income and Deduction on Tranfer or Change in Partnerhip Interet 4 5/6 Sat. (1:00 p.m. to 5:00 p.m.) Partner Share of Partnerhip Debt and Liabilitie Partnerhip Lo Deductibility Limitation Cunningham: Chapter 8 Cengage: Section 10-3e IRC 465(b)(6); 752 Page 6 of 8

7 C l a Date Cla Topic Reading Due Before Cla (See link above under Reading ) Homework and Other Activitie to Complete Before Cla 5 5/10 Partnerhip Ditribution Sale of Partnerhip Interet Partnerhip Termination including technical termination Cunningham: Chapter 10 (Page and ), Chapter 11; Chapter 13 Cengage: Section 11-1(a) through (e) (Ditribution); 11-3 (Sale of Partnerhip Interet) Online Canva Quiz #3 6 5/17 Cla i on MAIN CAMPUS BBC 003 Partnerhip Aet Optional and Required Bai Adjutment Diguied Sale Partnerhip termination including technical termination IRC 732; 733; 741; 753(a) to (d)(1); 751 Chapter 10: Page ; Chapter 12; Chapter 15 Cengage: Section 10-2b (Diguied ale portion only) and 11-1d (Diguied ale); 11-5 (Optional bai adjutment under 754); 11-6 (Partnerhip termination) IRC 708(a) and (b)(1); 734 [kip 734(e)]; 737; 743 [kip 743(e) and (f)]; 754; /24 Death or Retirement of Partner Special Allocation of Partnerhip Income Incl. Subtantial Economic Effect; Allocation on Nonrecoure Deduction Allocation of Income and Deduction from Contributed Property Cunningham Chapter 5, 6 and 14 Text: 11-2 (Retirement and Death of Partner); 11-4c Trea. Reg (b)(2) Online Canva Quiz #4 Page 7 of 8

8 C l a Date Cla Topic Reading Due Before Cla (See link above under Reading ) Homework and Other Activitie to Complete Before Cla 8 & 9 5/31 California partnerhip and LLC reporting including California withholding and California taxe and fee California, Intertate and Other State- Related Iue (Online Cla Lecture) Review for Final Exam 1) California FTB 2016 Partnerhip Tax Booklet (Skip ection on credit) 2) California FTB Withholding on Partnerhip and LLC 3) California FTB Limited Liability Company (LLC) Filing Information Publication (FTB 3556) 4) California FTB Publication 1017 (Page Dometic Pa-Through Entitie Section: Partnerhip and LLC) 1) View California, Intertate and Other State Tax Iue via Online Cla Lecture (Poted on Canva) 2) Online Canva Quiz # /7 Final Exam Page 8 of 8